SENATE BILL No. 1414

 

 

September 12, 2006, Introduced by Senators GILBERT and ALLEN and referred to the Committee on Commerce and Labor.

 

 

 

     A bill to amend 1996 PA 376, entitled

 

"Michigan renaissance zone act,"

 

by amending sections 8c, 8e, and 8f (MCL 125.2688c, 125.2688e, and

 

125.2688f), section 8c as amended by 2006 PA 284, section 8e as

 

added by 2006 PA 270, and section 8f as added by 2006 PA 305.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 8c. (1) The board, upon recommendation of the board of

 

the Michigan strategic fund defined in section 4 of the Michigan

 

strategic fund act, 1984 PA 270, MCL 125.2004, and upon

 

recommendation of the commission of agriculture, may designate not

 

more than 30 additional renaissance zones for agricultural

 

processing facilities within this state in 1 or more cities,

 

villages, or townships if that city, village, or township or

 

combination of cities, villages, or townships consents to the

 


creation of a renaissance zone for an agricultural processing

 

facility within their boundaries.

 

     (2) Each renaissance zone designated for an agricultural

 

processing facility under this section shall be 1 continuous

 

distinct geographic area.

 

     (3) The board may revoke the designation of all or a portion

 

of a renaissance zone for an agricultural processing facility if

 

the board determines that the agricultural processing facility does

 

1 or more of the following in a renaissance zone designated under

 

this section:

 

     (a) Fails to commence operation.

 

     (b) Ceases operation.

 

     (c) Fails to commence construction or renovation within 1 year

 

from the date the renaissance zone for the agricultural processing

 

facility is designated.

 

     (4) Beginning  on the date of the amendatory act that added

 

this subsection  July 10, 2006, the board shall consider all of the

 

following when designating a renaissance zone for an agricultural

 

processing facility:

 

     (a) The economic impact on local suppliers who supply raw

 

materials, goods, and services to the agricultural processing

 

facility.

 

     (b) The creation of jobs relative to the employment base of

 

the community rather than the static number of jobs created.

 

     (c) The viability of the project.

 

     (d) The economic impact on the community in which the

 

agricultural processing facility is located.

 


     (e) All other things being equal, giving preference to a

 

business entity already located in this state and to a business

 

that commits to use firms located in this state to construct or

 

expand the agricultural processing facility.

 

     (f) The creation of indirect jobs associated with the

 

construction or expansion of the agricultural processing facility.

 

     (5) Beginning  on the date of the amendatory act that added

 

this subsection  July 10, 2006, the board shall do all of the

 

following:

 

     (a) Require a development agreement between the Michigan

 

strategic fund and the agricultural processing facility.

 

     (b) Designate not less than 3 of the renaissance zones for

 

agricultural processing facilities that have an initial capital

 

investment of less than $7,000,000.00.

 

     (c) Designate not less than 5 of the renaissance zones for

 

agricultural processing facilities in rural areas.

 

     (6) As used in this section, "development agreement" means a

 

written agreement between the Michigan strategic fund and the

 

agricultural processing facility that includes, but is not limited

 

to, all of the following:

 

     (a) A requirement that the agricultural processing facility

 

comply with all state and local laws.

 

     (b) A requirement that the agricultural processing facility

 

report annually to the Michigan strategic fund on all of the

 

following:

 

     (i) The amount of capital investment made at the facility.

 

     (ii) The number of individuals employed at the facility at the

 


beginning and end of the reporting period as well as the number of

 

individuals transferred to the facility from another facility owned

 

by the agricultural processing facility.

 

     (iii) The percentage of raw materials purchased in this state.

 

     (iv) The number of individuals who reside in this state who are

 

employed in the construction or expansion of the agricultural

 

processing facility.

 

     (c) Any other conditions or requirements reasonably required

 

by the Michigan strategic fund.

 

     Sec. 8e. (1) The board, upon recommendation of the board of

 

the Michigan strategic fund defined in section 4 of the Michigan

 

strategic fund act, 1984 PA 270, MCL 125.2004, may designate not

 

more than 10 additional renaissance zones for renewable energy

 

facilities within this state in 1 or more cities, villages, or

 

townships if that city, village, or township or combination of

 

cities, villages, or townships consents to the creation of a

 

renaissance zone for a renewable energy facility within their

 

boundaries.

 

     (2) Each renaissance zone designated for a renewable energy

 

facility under this section shall be 1 continuous distinct

 

geographic area.

 

     (3) The board may revoke the designation of all or a portion

 

of a renaissance zone for a renewable energy facility if the board

 

determines that the renewable energy facility does 1 or more of the

 

following in a renaissance zone designated under this section:

 

     (a) Fails to commence operation.

 

     (b) Ceases operation.

 


     (c) Fails to commence construction or renovation within 1 year

 

from the date the renaissance zone for the renewable energy

 

facility is designated.

 

     (4) When designating a renaissance zone for a renewable energy

 

facility, the board shall consider all of the following:

 

     (a) The economic impact on local suppliers who supply raw

 

materials, goods, and services to the renewable energy facility.

 

     (b) The creation of jobs relative to the employment base of

 

the community rather than the static number of jobs created.

 

     (c) The viability of the project.

 

     (d) The economic impact on the community in which the

 

renewable energy facility is located.

 

     (e) All other things being equal, giving preference to a

 

business entity already located in this state and to a business

 

that commits to use firms located in this state to construct or

 

expand the renewable energy facility.

 

     (f) Whether the renewable energy facility can be located in an

 

existing renaissance zone designated under section 8 or 8a.

 

     (g) The creation of indirect jobs associated with the

 

construction or expansion of the renewable energy facility.

 

     (5) Beginning  on the effective date of the amendatory act

 

that added this subsection  July 7, 2006, the board shall require a

 

development agreement between the Michigan strategic fund and the

 

renewable energy facility.

 

     (6) Until the maximum number of additional renaissance zones

 

for renewable energy facilities described in subsection (1) is met,

 

if the board designates a renaissance zone under this section,

 


section 8c, or section 8f for a facility that is a forest products

 

processing facility or an agricultural processing facility and that

 

also meets the definition of a renewable energy facility, then the

 

board shall only designate that renaissance zone as a renaissance

 

zone for a renewable energy facility under this section.

 

     (7) As used in this section, "development agreement" means a

 

written agreement between the Michigan strategic fund and the

 

renewable energy facility that includes, but is not limited to, all

 

of the following:

 

     (a) A requirement that the renewable energy facility comply

 

with all state and local laws.

 

     (b) A requirement that the renewable energy facility report

 

annually to the Michigan strategic fund on all of the following:

 

     (i) The amount of capital investment made at the facility.

 

     (ii) The number of individuals employed at the facility at the

 

beginning and end of the reporting period as well as the number of

 

individuals transferred to the facility from another facility owned

 

by the renewable energy facility.

 

     (iii) The percentage of raw materials purchased in this state.

 

     (iv) The number of individuals who reside in this state who are

 

employed in the construction or expansion of the renewable energy

 

facility.

 

     (c) Any other conditions or requirements reasonably required

 

by the Michigan strategic fund.

 

     Sec. 8f. (1) The board, upon recommendation of the board of

 

the Michigan strategic fund defined in section 4 of the Michigan

 

strategic fund act, 1984 PA 270, MCL 125.2004, may designate not

 


more than 10 additional renaissance zones for forest products

 

processing facilities within this state in 1 or more cities,

 

villages, or townships if that city, village, or township or

 

combination of cities, villages, or townships consents to the

 

creation of a renaissance zone for a forest products processing

 

facility within their boundaries. The board shall designate not

 

more than 5 renaissance zones for a forest products processing

 

facility each year until the maximum number of renaissance zones

 

for a forest products processing facility is met.

 

     (2) Each renaissance zone designated for a forest products

 

processing facility under this section shall be 1 continuous

 

distinct geographic area.

 

     (3) The board may revoke the designation of all or a portion

 

of a renaissance zone for a forest products processing facility if

 

the board determines that the forest products processing facility

 

does 1 or more of the following in a renaissance zone designated

 

under this section:

 

     (a) Fails to commence operation.

 

     (b) Ceases operation.

 

     (c) Fails to commence construction or renovation within 1 year

 

from the date the renaissance zone for the forest products

 

processing facility is designated.

 

     (4) Beginning  on the effective date of the amendatory act

 

that added this subsection  July 20, 2006, the board shall consider

 

all of the following when designating a renaissance zone for a

 

forest products processing facility:

 

     (a) The economic impact on local suppliers who supply raw

 


materials, goods, and services to the forest products processing

 

facility.

 

     (b) The creation of jobs relative to the employment base of

 

the community rather than the static number of jobs created.

 

     (c) The viability of the project.

 

     (d) The economic impact on the community in which the forest

 

products processing facility is located.

 

     (e) Whether the forest products processing facility can be

 

located in an existing renaissance zone designated under section 8

 

or 8a.

 

     (f) The creation of indirect jobs associated with the

 

construction or expansion of the forest products processing

 

facility.

 

     (g) All other things being equal, giving preference to a

 

business that commits to use firms located in this state to

 

construct or expand the forest products processing facility.

 

     (5) Beginning  on the effective date of the amendatory act

 

that added this subsection  July 20, 2006, the board shall require

 

a development agreement between the Michigan strategic fund and the

 

forest products processing facility.

 

     (6) As used in this section, "development agreement" means a

 

written agreement between the Michigan strategic fund and the

 

forest products processing facility that includes, but is not

 

limited to, all of the following:

 

     (a) A requirement that the forest products processing facility

 

comply with all state and local laws.

 

     (b) A requirement that the forest products processing facility

 


report annually to the Michigan strategic fund on all of the

 

following:

 

     (i) The amount of capital investment made at the facility.

 

     (ii) The number of individuals employed at the facility at the

 

beginning and end of the reporting period as well as the number of

 

individuals transferred to the facility from another facility owned

 

by the forest products processing facility.

 

     (iii) The percentage of raw materials purchased in this state.

 

     (iv) The number of individuals who reside in this state who are

 

employed in the construction or expansion of the forest products

 

processing facility.

 

     (c) Any other conditions or requirements reasonably required

 

by the Michigan strategic fund.